Australian expat home loans to buy property in Australia
What is an Australian expat home loan?
An Australian expat home loan is a type of home loan for Australian Citizens or Australian permanent residents who are living overseas. Some lenders will not approve home loans for Australian expats living overseas and those that do have specific criteria about how they assess home loan applications from expats living overseas.
How much deposit is required for an Aussie expat home loan?
Some lenders will lend over 80%, up to 95%, of the property value for Aussie expat home loans if lenders mortgage insurance is used. However, due to the logistics of paying the mortgage payments, it is often easier if a larger deposit is paid and the mortgage payments are covered by the rental income.
How is an Australian expat’s foreign income assessed by Australian lenders when applying for a home loan?
Foreign income will be considered by some lenders in their assessment of home loan applications. You will be required to provide payslips from your employer. Some lenders may accept a letter from your employer as evidence of your income in certain circumstances. This can be beneficial if you are in a country where formal payslips are not usually provided.
If you are providing payslips and the payslips are in a foreign language they may need to be translated into English. Your foreign income will generally be converted into Australian dollars and then reduced by set percentage, typically 80%, to account for fluctuations in currency exchange rates. Any rental income including from the property being purchased with the home loan can also be considered. Some lenders will reduce the rental income by a percentage (e.g. 80%) to account for vacancy rate and other costs associated with the property.
Do Australian expats need to get approval from the Foreign Investment Review Board?
No, Australian expats do not need Foreign Investment Review Board approval to buy property in Australia.
Can Australian expats get construction home loans?
Yes, Australian expats can get a construction loan to build a house / property in Australia.
Are there any other considerations when applying for an expat home loan?
Some of the other considerations when applying for an Australian expat home loan include:
Some lenders will require you to have a power of attorney whilst other will not allow a power of attorney.
If you are overseas when organising your home loan may need to go to an Australian Consulate to provide or sign documents.
Other lending criteria still apply so you will need to demonstrate your ability to repay the loan, certain property types or locations will not be acceptable to some lenders and you may be required to show genuine savings when borrowing a high percentage (>80%) of the property value.
I want to get my Australian expat home loan started
Contact us to get your Aussie expat home loan started.